While the real estate sector has seen a price correction in the recent past due to GST but buying property in India has also become favourable with the best rates. The real estate arena is one of the sectors taking giant strides in India. With the GST coming into play, though the prices have been revised, still, the market changes have been gradual and are again waking up to its benefits. Well! Are you an NRI (non-resident Indian), who is interested in buying a property in India? Then, you should be aware of specific legal provisions about the purchase or be owning of immovable property in India, under the Foreign Exchange Management Act (FEMA). Non-resident Indian (NRIs) and persons of Indian origin (PIOs) are treated at par, for investment in real estate.
RERA stands for Real Estate Regulatory Authority which was put forth by the Indian National Congress government in 2013. Its primary goal is to boost the real estate market and look into the issues of the buyers. The primary concern for an NRI investing in buying a property in India was the legal procedure, following up with the builder and unavailability of standardised and useful information required while purchasing a property. Though there are numerous potential buyers, the lack of a systematic procedure couldn’t attract buyers. RERA aims at addressing such issues.
Under Real Estate Regulation and Development (RERA) they will look into the following:
Security – For safety purpose of the money invested by buyers, the payment of 70% buyers will be kept in the separate account. This money will be used only for construction and land-related purpose with the consent of the buyer.
Transparency – Builders and developers are supposed to submit all the original documents related to the project. Without the consent of the buyer builders and developers cannot make any unplanned changes in the project.
Fairness – Builders are instructed as per norms to sell properties based on carpet area and not super built-up area. If there is any delay in the completion of the project the entire amount invested on the property will be returned.
Quality – Builders are expected to rectify any issue faced by the buyer within five years of purchasing the property.
Authorisation – A regulator cannot advertise, sell, build, invest, or book a plot before completion of the registration process. After registration formalities are completed, all the advertisement for investments should bear a unique registration number according to the particular project provided by RERA.
Besides these benefits mentioned above the RERA Act is also beneficial for buyers as builders will not be able to delay projects, grievances will be addressed on an urgent basis, and builders will be responsible for any defects in the house.
GST has been introduced to do away with the difference in indirect taxes applicable across the states. The real estate arena looks to benefit from GST as it allows for tax credits for more than one transaction on the property and in the long run reduce the price of the property.
RERA will provide more transparency and safety of the property for buyers. The Benami Transactions (Prohibition) Act provides the safety and security for buyers to have a hassle-free experience while investing in any property making it an ideal time for buyers to purchase a property.